RMJM has designs on Bahrain as it eyes growth in Middle East

RMJM, the architecture firm behind the Falkirk Wheel and the Scottish Parliament building, is to open in Bahrain, its 17th office worldwide, as it looks to cash in on stronger overseas economies.

The Edinburgh-based business, which last year laid off 60 staff, including a number at its Edinburgh headquarters as the credit crunch devastated the building industry, said it was aiming growth at markets in the Middle East and Asia, but admitted the situation in the UK remains "dire".

RMJM's Bahrain office is likely to grow head count to 15 within 12 months, and will initially service a project to build a headquarters for the National Oil and Gas Association. It is also on a shortlist for a large school project part-funded by Bahrain's government and private investors.

"There are parts of the business which are shrinking, but there are other parts we're trying to grow," said Paul Stallan, RMJM's design director for Europe, adding that he expected the new office to generate around 500,000 in its first year and increase revenues to 2 million in the following 12 months.

"In the UK and the US it is just tumbleweed at the moment in terms of projects, because the economy is still on its knees. It is still pretty dire in the UK."

He said the company had recruited a number of Scots architects to take up positions at offices in growing offices such as Dubai, where the company employs 250 staff.

"In other areas, such as the Middle East and Hong Kong, the number of construction projects around would just blow you away," Stallan added. "There is a perception that, because the Dubai bubble burst, it is still a difficult area. But we are already feeling there is stability in places such as Qatar, Oman and Saudi Arabia."

The company is eyeing South America as a possible location for its next new base, where it hopes to win contracts for construction projects ahead of the 2016 Olympic Games in Rio de Janeiro.

Representatives from the practice's US office are already working on pre-consultation projects with the organisers of the Games - the first to be held in South America.

Architects from the firm created the iconic "Water Cube" aquatics centre project for the Beijing Olympic Games and are also working on buildings for the forthcoming Commonwealth Games in Glasgow.

RMJM, which earlier this year appointed former Royal Bank of Scotland chief executive Fred Goodwin as a special adviser, has been hard hit as a result of the recession. Last month, late accounts filed with Companies House showed a slide in profits at RMJM as building projects were cancelled or put on hold.

Pre-tax profits in the year to 30 April 2009 fell to 5.7m from 7.9m in 2008, according to the report, which was filed six months late while the company renegotiated its banking facilities.

Bank borrowings rose to 18.4m from 11.3m to provide extra headroom to cope with the impact of the global economic downturn, although turnover increased by 22 per cent to 121.8m from 99.9m.